I’m familiar with the margins in retail (my parents ran a retail store their entire lives).
replyMy point wasn’t that they don’t do a lot of volume; it’s that their retail business is not what’s driving their profit, and I don’t believe it’s growing.
I wouldn’t be surprised (though have not looked) if DoorDash (with DashMart), Uber Eats (which does more than just food), and Instacart have eaten significantly into Amazon’s revenue by solving the “get it to me” problem even faster.
In the US last mile is super hard because of the super high wages. The only way to work around it is volume per delivery person.
replyIf you do 2 deliveries per hour (like Uber Eats / door dash), you pay essentially $5/order (assuming a super low us wage of $10/hour and no equipment cost/ gas).
So no in the US, Amazon is not threatened by such delivery services.
Now if you go to China, the equation flips. Which is why Amazon failed completely.